In recent years, the cost of producing organic produce in the United States has decreased largely due technological advancement. At the same time, more and more Americans prefer organic produce over conventional produce
Which of the following best explains the effect of these events in the organic produce market?
A) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
D) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
B
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What are the substitution effects that affect aggregate demand?
What will be an ideal response?
How were open market operations conducted prior to 1935?
A) They were carried out by the Federal Open Market Committee. B) They were carried out under the direction of the Secretary of the Treasury. C) They were carried out by the district Federal Reserve banks. D) They were carried out by the Banking Committee of the House of Representatives.
An increase in the price level will: a. increase the quantity of RGDP supplied, but not increase short-run aggregate supply. b. decrease the quantity of RGDP supplied, but not decrease short-run aggregate supply. c. increase short-run aggregate supply
d. decrease short-run aggregate supply.
If each firm in an oligopolistic market matches price decreases but does not match price increases
A. prices become flexible. B. prices become rigid where the marginal revenue and average cost curves intersect. C. price wars ensue, and economic profits fall to zero. D. prices become rigid at the prevailing market price.